Arfah Salleh

Fractional Reserve Banking and Maqasid Al-Shariah: An Incompatible Practice?

This paper conceptualises the process, existence and the implications of fractional reserve banking in our present banking system (both conventional and Islamic). It then reasons the conformity of our contemporary Islamic banking, finance and investment institutions towards achieving the objectives of Islamic law (maqasid al-shariah) operating under the FRB framework. The paper uses conceptual and logical deductions from Qur’an and its teachings to show how fractional reserve banking violates the objectives of Islamic law (maqasid al-shariah), therefore it is impermissible in Islamic perspective. The paper also discusses some scholars’ view in support of the system. A measurement tool which is based on the objectives of Islamic law (maqasid al-shariah) parameters will be eventually used to measure empirically the implication of such system (Fractional ReserveBanking) to the society. The paper concludes with the believe and hope that Islamic banking, finance and investment institutions should avoid the system and operate under a monetary system acceptable in Islam that will help attain the objectives of Islamic law (maqasid al-shariah).

Recognising and leveraging unique strengths of entrepreneurs in Malaysia

The main focus of this research is to investigate the factors that influenced Malaysian founding entrepreneurs to take their companies to a growth-stage. The study found a significant relationship between venture growth and entrepreneurs with high personal initiative, focused on specific competency areas within operations, finance, marketing and human resources. This study on venture growth will serve as a road map and guide for many new business start-ups to follow and to grow towards the direction that would produce desirable results.